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Poland

Retail_Trading_Status

Allowed-Regulated Unknown
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Analysis ID
#167
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Archived
Created
2025-04-12 06:51
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Live

Executive Summary

In Poland, retail cryptocurrency trading is allowed but regulated, primarily through the AML Act, which requires Virtual Asset Service Providers (VASPs) to register and implement KYC/AML procedures. While individuals face no direct restrictions, platforms must comply with regulations, and profits are subject to taxation. The EU's MiCA regulation is in transitional implementation, with national legislation pending to fully align with MiCA's licensing and supervisory framework under the Polish Financial Supervision Authority (KNF).

Key Pillars

  • Primary Regulator: The Polish Financial Supervision Authority (KNF) is expected to become the primary regulator for crypto businesses under MiCA, overseeing licensing and compliance.
  • Compliance Requirements: Virtual Asset Service Providers (VASPs) must comply with the Polish Act of March 1, 2018, on Counteracting Money Laundering and Financing of Terrorism (AML Act), implementing Anti-Money Laundering (AML) and Know-Your-Customer (KYC) procedures.
  • Licensing/Registration: VASPs are required to register their activity in the Register of Activities in the Scope of Virtual Currencies, maintained by the Tax Administration Chamber in Katowice, until the national MiCA implementation law is passed.

Landmark Laws

  • Polish Act of March 1, 2018, on Counteracting Money Laundering and Financing of Terrorism (AML Act): This act classifies entities providing services like crypto-to-fiat exchange, crypto-to-crypto exchange, intermediation in exchanges, and maintaining crypto wallets/accounts as obliged institutions, requiring them to register and implement AML/KYC procedures.
  • Markets in Crypto-Assets (MiCA) Regulation (EU) 2023/1114: This EU regulation aims to create a harmonized regulatory framework for crypto-assets and service providers across the EU, introducing comprehensive rules including licensing requirements, capital requirements, consumer protection measures, and stricter AML/KYC protocols. It became applicable on December 30, 2024, but is still in transitional implementation in Poland.

Considerations

  • Cryptocurrencies are not considered legal tender, electronic money, or financial instruments in Poland.
  • Profits from cryptocurrency trading are subject to taxation.
  • The Polish Financial Supervision Authority (KNF) and the National Bank of Poland (NBP) have issued warnings regarding the risks associated with cryptocurrencies, such as high volatility, lack of guarantees, potential for fraud, and risks related to theft.

Notes

  • A 2018 KNF statement clarified that since no regulations prohibit the operation of cryptocurrency exchanges or trading, such activities are considered legal, provided they comply with the AML/CFT Act.
  • The transitional period for MiCA allows VASPs legally operating before December 30, 2024, to continue providing services until July 1, 2026, without a CASP license, unless Poland enacts legislation to alter this.
  • The National Bank of Poland (NBP) has ruled out adding Bitcoin (BTC) to its national reserves, preferring financial security and stability over cryptocurrency investments.
  • Poland has not yet finalized its national legislation to fully implement MiCA, and the KNF is expected to become the primary regulator for crypto businesses once the national law is passed.

Detailed Explanation

As of April 12, 2025, retail cryptocurrency trading in Poland is legally permissible but regulated. Individual citizens and residents can buy, sell, and hold cryptocurrencies without direct legal prohibitions. However, service providers facilitating these transactions, particularly Virtual Asset Service Providers (VASPs), are subject to regulatory oversight. Poland does not recognize cryptocurrencies as legal tender, electronic money, or financial instruments, as stated by the Polish Financial Supervision Authority (KNF) and the National Bank of Poland (NBP), which have issued warnings regarding the risks associated with cryptocurrencies, including volatility, fraud, and theft. The NBP has explicitly stated it will not consider Bitcoin for national reserves due to stability concerns.

The primary regulation impacting cryptocurrency activities has been the Polish Act of March 1, 2018, on Counteracting Money Laundering and Financing of Terrorism (AML Act). This act classifies entities providing crypto-to-fiat exchange, crypto-to-crypto exchange, intermediation in exchanges, and maintaining crypto wallets/accounts as obliged institutions, requiring them to register with the Tax Administration Chamber in Katowice and implement AML/KYC procedures, reporting suspicious activities to the General Inspector of Financial Information (GIIF). Platforms operating legally within Poland or targeting Polish customers must comply with these regulations. Trading with personal funds does not require a license for the individual, but profits are subject to taxation.

The Markets in Crypto-Assets (MiCA) Regulation (EU) 2023/1114 became applicable on December 30, 2024, aiming to create a harmonized regulatory framework for crypto-assets across the EU. MiCA introduces comprehensive rules, including licensing requirements for Crypto-Asset Service Providers (CASPs), minimum capital requirements, consumer protection measures, market abuse rules, and stricter AML/KYC protocols. However, Poland has not yet finalized its national legislation to fully implement MiCA, meaning new entities cannot currently apply for a MiCA CASP license in Poland, and the previous VASP registration system stopped accepting new applications as of December 30, 2024. Existing VASPs registered before December 30, 2024, can continue operating under the pre-existing AML Act framework during a transitional period, which extends until July 1, 2026, unless Poland enacts legislation to alter this.

Once the national MiCA implementation law is passed, the KNF is expected to become the primary regulator for crypto businesses, overseeing licensing and compliance, with the power to impose fines. According to a 2018 KNF statement, since no regulations prohibit the operation of cryptocurrency exchanges or trading, such activities are considered legal, provided they comply with the AML/CFT Act. Poland's National Bank (NBP) has ruled out adding Bitcoin (BTC) to its national reserves, preferring financial security and stability over cryptocurrency investments.

Summary Points

Okay, here's the regulatory analysis report converted into a clear, well-structured bullet point format:

Retail Cryptocurrency Trading in Poland: Regulatory Status (April 12, 2025)

I. Overall Status:

  • Allowed-Regulated: Individuals can legally buy, sell, and hold cryptocurrencies. No direct restrictions on individual traders. Regulation primarily focuses on service providers (VASPs/CASPs).

II. Key Regulatory Bodies & Their Roles:

  • Polish Financial Supervision Authority (KNF):
    • Historically issued warnings about cryptocurrency risks (volatility, fraud, etc.).
    • Future Role (Post-MiCA Implementation): Expected to become the primary regulator for crypto businesses, overseeing licensing and compliance, with the power to impose fines.
  • National Bank of Poland (NBP):
    • Issued warnings about cryptocurrency risks.
    • Explicitly stated it will not consider Bitcoin for national reserves due to stability concerns.
  • Tax Administration Chamber in Katowice:
    • Previous Role (Pre-MiCA): Maintained the Register of Activities in the Scope of Virtual Currencies for VASPs. Registration closed as of December 30, 2024.
  • General Inspector of Financial Information (GIIF):
    • Receives suspicious activity reports (SARs) from VASPs under AML/KYC regulations.

III. Important Legislation & Regulations:

  • Polish Act of March 1, 2018, on Counteracting Money Laundering and Financing of Terrorism (AML Act):
    • Pre-MiCA Primary Regulation: Defined entities providing crypto services (exchanges, wallets) as "obliged institutions" (VASPs).
    • Current Status: Still in effect during MiCA transitional period for existing VASPs.
  • Markets in Crypto-Assets (MiCA) Regulation (EU) 2023/1114:
    • EU-wide regulation aiming to harmonize crypto-asset regulation.
    • Introduces licensing requirements for Crypto-Asset Service Providers (CASPs), minimum capital requirements, consumer protection measures, market abuse rules, and stricter AML/KYC protocols.
    • Became applicable on December 30, 2024.

IV. Requirements for Compliance (Primarily for VASPs/CASPs):

  • Pre-MiCA (Under AML Act):
    • Registration in the Register of Activities in the Scope of Virtual Currencies (now closed to new applicants).
    • Implementation of Anti-Money Laundering (AML) and Know-Your-Customer (KYC) procedures.
    • Customer due diligence.
    • Transaction monitoring.
    • Reporting suspicious activities to the GIIF.
    • Ensuring personnel have relevant knowledge/experience and no disqualifying criminal records.
  • Post-MiCA (Future, upon full national implementation):
    • Licensing as a Crypto-Asset Service Provider (CASP) from the KNF.
    • Compliance with MiCA's comprehensive rules, including capital requirements, consumer protection, and market abuse prevention.
    • Stricter AML/KYC protocols aligned with EU directives.

V. Notable Restrictions or Limitations:

  • No Legal Tender Status: Cryptocurrencies are not considered legal tender, electronic money, or financial instruments in Poland.
  • Official Warnings: KNF and NBP have issued warnings regarding the risks associated with cryptocurrencies.
  • MiCA Implementation Delay: Poland has not yet finalized national legislation to fully implement MiCA.
    • New entities cannot currently apply for a MiCA CASP license in Poland.
    • The previous VASP registration system is closed to new applicants.

VI. Recent Developments or Changes:

  • MiCA Applicability: MiCA became applicable on December 30, 2024.
  • VASP Registration Closure: The Register of Activities in the Scope of Virtual Currencies stopped accepting new applications on December 30, 2024.
  • MiCA Transitional Period ("Grandfathering"): Existing VASPs registered before December 30, 2024, can continue operating under the pre-existing AML Act framework until July 1, 2026 (unless Poland enacts legislation to alter this).
  • National MiCA Implementation Pending: Poland is still developing national law to align with MiCA. The KNF is expected to become the primary regulator once this law is passed.

VII. Taxation:

  • Profits from cryptocurrency trading are subject to taxation.

VIII. NBP Stance:

  • The NBP has ruled out adding Bitcoin to its national reserves, citing financial security and stability concerns.

Disclaimer: Cryptocurrency regulations are rapidly evolving. This report reflects the status based on information available up to April 12, 2025. The ongoing implementation of MiCA in Poland may lead to further changes.

Full Analysis Report

Report on the Status of Retail Cryptocurrency Trading in Poland

Date: April 12, 2025

Topic: Retail_Trading_Status

Description: Assessment of the legality and regulatory environment for individual citizens and residents in Poland to buy, sell, and hold cryptocurrencies, including applicable regulations like KYC/AML requirements for platforms and official warnings.

1. Current Status: Allowed-Regulated

2. Narrative Explanation:

Individual citizens and residents in Poland are legally permitted to buy, sell, and hold cryptocurrencies. The activity itself is not prohibited for individuals. However, the environment is regulated, primarily focusing on the service providers facilitating these transactions, rather than directly restricting individual traders.

Historical Context and Official Stance:
Poland does not consider cryptocurrencies as legal tender, electronic money, or financial instruments under its current definitions [9, 10]. Both the Polish Financial Supervision Authority (KNF) and the National Bank of Poland (NBP) have historically issued warnings regarding the risks associated with cryptocurrencies, such as high volatility, lack of guarantees, potential for fraud, and risks related to theft [9, 19, 20]. The NBP has explicitly stated it will not consider Bitcoin for national reserves due to stability concerns [12, 17, 19, 20, 21]. Despite these warnings and the official stance on the nature of crypto-assets, trading by individuals has not been banned [22, 23]. A 2018 KNF statement clarified that since no regulations prohibit the operation of cryptocurrency exchanges or trading, such activities are considered legal [22, 23].

Regulatory Framework (Pre-MiCA and Current):
The primary regulation impacting cryptocurrency activities has been the Polish Act of March 1, 2018, on Counteracting Money Laundering and Financing of Terrorism (AML Act) [4, 5, 6, 9, 23]. This act classifies entities providing services like crypto-to-fiat exchange, crypto-to-crypto exchange, intermediation in exchanges, and maintaining crypto wallets/accounts as "obliged institutions" [4, 23]. These entities, often referred to as Virtual Asset Service Providers (VASPs), are required to:
* Register their activity in the Register of Activities in the Scope of Virtual Currencies, maintained by the Tax Administration Chamber in Katowice [4, 5].
* Implement Anti-Money Laundering (AML) and Know-Your-Customer (KYC) procedures, including customer due diligence, transaction monitoring, and reporting suspicious activities to the General Inspector of Financial Information (GIIF) [3, 5, 6, 9, 13].
* Ensure individuals involved in the VASP's operations have relevant knowledge/experience and no disqualifying criminal records [6, 8].

This means that while individuals can trade freely, the platforms they use (if operating legally within Poland or targeting Polish customers) must comply with these AML/CTF regulations. Trading using personal funds does not require a license for the individual [4]. However, profits from cryptocurrency trading are subject to taxation [4, 9, 10].

Impact of EU MiCA Regulation:
As an EU member state, Poland is subject to the Markets in Crypto-Assets (MiCA) Regulation (EU) 2023/1114, which aims to create a harmonized regulatory framework for crypto-assets and service providers across the EU [3, 7, 11]. MiCA introduces comprehensive rules, including licensing requirements for Crypto-Asset Service Providers (CASPs), minimum capital requirements, consumer protection measures, market abuse rules, and stricter AML/KYC protocols aligned with EU directives [3, 6].

MiCA became applicable starting December 30, 2024 [7, 11, 14]. However, Poland has not yet finalized its national legislation to fully implement MiCA's mechanisms, such as designating the KNF as the competent authority for CASP licensing and supervision [3, 7, 11, 14]. This delay means:
* New entities cannot currently apply for a MiCA CASP license in Poland [7, 11].
* The previous VASP registration system managed by the Tax Administration Chamber in Katowice stopped accepting new applications as of December 30, 2024 [7].
* Existing VASPs registered before December 30, 2024, can continue operating under the pre-existing AML Act framework during a transitional ("grandfathering") period provided by MiCA, which extends until July 1, 2026, unless Poland enacts legislation to alter this [3, 11, 14]. There were initial discussions and draft proposals suggesting shorter national transition periods (e.g., ending Dec 31, 2025 or requiring applications by mid-2025), but the lack of finalized national law means the default MiCA period currently applies [3, 6, 7, 14, 15, 18].

Once the national MiCA implementation law is passed, the KNF is expected to become the primary regulator for crypto businesses, overseeing licensing and compliance, with the power to impose fines [3, 16].

Conclusion:
Retail cryptocurrency trading in Poland is Allowed-Regulated. Individuals face no direct legal restrictions on buying, selling, or holding crypto. However, the service providers facilitating these activities are subject to regulation, primarily under the AML Act, requiring registration and adherence to KYC/AML procedures. The regulatory landscape is evolving significantly with the ongoing implementation of the EU's MiCA framework, which will introduce a more comprehensive licensing regime and stricter requirements for service providers under the supervision of the KNF.

3. Relevant Excerpts:

  • On Legality for Individuals/Platforms (Pre-MiCA Context): "Trading cryptocurrencies, or any other assets, with your funds (either as a natural or legal person) does not require a license in Poland. A license is required for providing services to third parties, including operating a trading brokerage, an exchange, etc." - LegalBison (April 7, 2025) [4]
  • On Legality (KNF Stance): "According to the KNF public announcement of June 6th 2018 referring to the activity of cryptocurrency platforms in Poland: as in Polish legal system there are no regulations prohibiting the operations of cryptocurrency platforms, it should be implied that the activity of cryptocurrency platforms as well as trading with cryptocurrencies shall not be prohibited. As a consequence, the activity of cryptocurrency platforms is lawful, however: operations of cryptocurrency platforms shall be compliant with AML/CFT Act..." - Dudkowiak Kopeć & Putyra [23] (Referencing a 2018 KNF statement [22])
  • On AML Regulation: "Under art. 2.1.12 AML/CFT Act entities carrying out business activity consisting in the provision of services in the scope of: (i) exchange between virtual currencies and means of payment, (ii) exchange between virtual currencies, (iii) intermediation in the exchange referred to in letter (i) or (ii) as well as (iv) maintaining accounts [...] shall be considered as obliged entities within the meaning of Polish AML/CFT legislation, with all implications (KYC, SAR filings etc.)." - Dudkowiak Kopeć & Putyra [23]
  • On VASP Registration: "Any company undertaking an activity based on, or related to, cryptocurrency services, has to be registered within the Poland virtual cryptocurrency registry. This Register of Activities in the Scope of Virtual Currencies is carried on by the Polish Tax Administration Chamber in Katowice." - LegalBison (April 7, 2025) [4]
  • On MiCA Implementation Status: "On December 30, 2024, Regulation (EU) 2023/1114, the Market in Crypto-Assets Regulation, came into full effect. [...] Nevertheless, MiCA is only in its transitional process in Poland, as the national law required to align the domestic legal framework with the provisions of MiCA is still in the process of being developed." - Oruga Group (December 30, 2024) [7]
  • On MiCA Grandfathering: "MiCA's Grandfathering Period: According to MiCA, any VASP that was legally operating before 30/12/2024, can continue providing services until 1/07/2026, without a CASP license. This transitional period is standardized across the EU unless a Member State took action to shorten it before the period began. Poland did not." - Law Firm in Poland (January 7, 2025) [11]
  • On NBP Stance: "Poland's National Bank (NBP) has ruled out adding Bitcoin (BTC) to its national reserves, preferring financial security and stability over cryptocurrency investments. During a press conference yesterday, NBP President [...] Adam Glapiński reaffirmed this stance, stating, 'We will not consider Bitcoin because reserve must be absolutely secure.'" - CryptoRank (February 2025) [17] (Similar statements reported by multiple sources [12, 19, 20, 21])

4. Source Links:

  • [3] Legal Nodes (MiCA Impact & VASP Status): https://legalnodes.com/article/poland-crypto-license
  • [4] LegalBison (Legality, VASP Reg, Taxation): https://legalbison.com/crypto-license/poland/
  • [5] Prifinance (VASP Requirements): https://prifinance.com/en/crypto-license/poland
  • [6] CMS Law (General Regulation, MiCA Draft): https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/poland
  • [7] Oruga Group (MiCA Transitional Period): https://orugagroup.com/insights/casp-in-poland-transitional-mica-compliance-regulatory-requirements/
  • [8] Dudkowiak Kopeć Putyra (VASP/CASP Requirements): https://dkplegal.pl/en/vasp-license-in-poland/
  • [9] Global Legal Insights (Govt Attitude, AML, Taxation): https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/poland
  • [10] Freeman Law (Taxation, Govt Definition): https://freemanlaw.com/poland-and-cryptocurrency/
  • [11] Law Firm in Poland (MiCA Status Jan 2025): https://lawfirm-poland.com/mica-in-poland-update-january-2025/
  • [12] OneSafe Blog (NBP Stance): https://onesafe.com/blog/polands-bitcoin-standoff-innovation-vs-stability-in-digital-finance/
  • [13] Cryptolicence.com (VASP Requirements): https://cryptolicence.com/get/poland-crypto-licence/
  • [14] Regulated United Europe (MiCA Status & Transition): https://rue.ee/en/news/poland-mica-latest-news-extended-transition-period
  • [15] Manimama Law Firm (MiCA Implementation): https://manimama.eu/en/mica-implementation-in-poland/
  • [16] Finance Magnates (KNF Role under MiCA): https://www.financemagnates.com/cryptocurrency/regulation/poland-to-regulate-crypto-in-2024-knf-empowered-to-impose-fines/
  • [17] CryptoRank (NBP Rejects Bitcoin Reserves): https://cryptorank.io/news/feed/57228-polands-central-bank-rejects-bitcoin-for-reserves-citing-stability-concerns
  • [18] Manimama Law Firm via Medium (Transition Period Update): https://medium.com/@manimama.eu/poland-opens-new-horizons-for-vasp-extension-of-the-transition-period-and-opportunities-for-crypto-e449832b97ea
  • [19] Cryptopolitan (NBP Rejects Bitcoin Reserves): https://www.cryptopolitan.com/polands-central-bank-rejects-bitcoin/
  • [20] Investing.com (NBP Rejects Bitcoin Reserves): https://www.investing.com/news/cryptocurrency-news/poland-central-bank-rejects-bitcoin-for-reserve-assets-3306536
  • [21] AInvest (NBP Rejects Bitcoin Reserves): https://www.ainvest.com/news/polands-central-bank-rejects-bitcoin-but-presidential-candidate-vows-to-make-poland-a-crypto-haven-26411263ec074c89/
  • [22] Hogan Lovells (Referencing 2018 KNF Statement on Legality): https://www.hoganlovells.com/en/services/digital-assets-and-blockchain/hub?areaoflaw=digital%20assets%20and%20blockchain&jurisdiction=poland
  • [23] Dudkowiak Kopeć & Putyra (Legality & AML): https://dkplegal.pl/en/are-cryptocurrency-platforms-lawful-in-poland/
  • [24] Polish Ministry of Finance (Warning on Unregulated Offshore Entities): https://www.gov.pl/web/finance/communication-no-30-regarding-the-warning-of-the-general-inspector-of-financial-information-about-taking-investment-decisions-involving-acquisition-and-trading-of-virtual-currencies-including-crypto-currencies-through-entities-headquartered-outside-the-territory-of-poland-and-other-member-states-of-the-european-union

Disclaimer: Cryptocurrency regulations are rapidly evolving. This report reflects the status based on information available up to April 12, 2025. The ongoing implementation of MiCA in Poland may lead to further changes.

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